FBR undertakes inspections of real estate agents, jewellers

ISLAMABAD: In a bid to comply with the conditions of Financial Action Task Force (FATF), the Federal Board of Revenue (FBR) has kick-started onsite inspections of offices of real estate agents to scrutinize data of their clients and the capability to generate Suspicious Transaction Reports (STRs).

Pakistan is bound to take stern action for imposing sanctions through effective monitoring as penalties and sealing of business premises after issuing notice against those who failed to comply with FATF requirements.

The FBR has already established Non-Designated Financial and Banking Professions (DNFBP) wing under Intelligence & Investigation (I&1) Inland Revenue Service (IRS) and, so far, sent out 50,000 notices to real estate agents, jewelers, and accountants, while lawyers were told that their representative bodies would devise a mechanism in consultation with the FBR to comply with international requirements.

The STRs will be generated in such cases where dirty money earned through money laundering or terror financing is parked or the real estate agents are not purchasing expensive properties satisfied about sources of income of those buyers beyond their known or legal sources of income.

The FBR’s Inland Revenue Service (IRS) has sent a notice to real estate agents, jewelers and accountants intimating them about the onsite inspections. The registered real estate agents were asked to submit their OSMQ. They were informed that the FBR’s team, led by Deputy Director Sohail Abbas/Deputy Director Zahid Iqbal Malik and comprising inspectors and staff of the directorate, will visit offices for full scope onsite inspection. They were asked to arrange the data/files of the entities client and other necessary documents for inspections. The FBR team will meet with CEO/proprietor and check his compliance and were informed of punitive action in case of non-cooperation.